On 16 July, the European Commission presented its proposal for a new Multiannual Financial Framework (MFF) that will define the European Union’s long-term budget for the period 2028-2034. With a budget of almost €2 trillion, equivalent to 1.26% of the EU’s gross national income, the MFF is designed to promote a more independent, prosperous, secure and resilient Europe.
This renewed budget responds to the emerging challenges facing the continent and seeks to strengthen the EU’s ability to respond swiftly to crises, promote territorial and social cohesion, accelerate innovation and consolidate Europe’s role as a global player.
A more agile, focused and coherent budget
One of the main new features of this MFF is greater flexibility in the use of funds, which will enable the EU to adapt quickly to new priorities or unexpected situations. In addition, financial programmes are simplified and harmonised, making it easier for citizens and businesses to access funding opportunities.
The Commission also proposes the introduction of National and Regional Partnership Plans, adapting investments and reforms to local needs and strengthening territorial cohesion. The proposal includes a strong boost to competitiveness, with strategic investments in innovation, clean technologies and industrial independence. It also puts forward a balanced proposal for new own resources, with the aim of ensuring adequate revenue without overburdening national budgets.
Investments focused on people, innovation and security
The new MFF is committed to a fairer and more inclusive Europe, with investments targeting education, democratic values and culture. The Erasmus+ programme is being strengthened and the AgoraEU initiative, aimed at protecting cultural diversity and artistic freedom, is being promoted.
Competitiveness and technological transformation will be strengthened with the creation of a new European Competitiveness Fund, focusing on the green and digital transition, biotechnology and defence. In terms of crisis preparedness and resilience, a new emergency mechanism is proposed that could mobilise up to €400 billion in loans for Member States.
The defence and security component will receive an unprecedented investment of €131 billion through the Competitiveness Fund itself, and border and migration management capabilities will be strengthened. At the international level, the Global Europe Instrument will have €200 billion at its disposal, and additional support of up to €100 billion is planned for Ukraine.
New resources and citizen participation
To finance these priorities without increasing the burden on national budgets, the Commission is proposing five new own resources. These include revenues linked to emissions trading, the carbon border adjustment mechanism, non-recycled electronic waste, tobacco taxes and a corporate contribution based on turnover.
The proposal not only reflects a strategic vision, but also an exercise in participatory democracy. Prior to its presentation, an open consultation process was carried out, including the European Citizens’ Panel on the EU budget, held in the first half of 2025. This process resulted in 23 recommendations, many of which have been incorporated into the final design of the MFF.